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According to a nationwide survey of 999 Americans by Falls & Co. – a Cleveland-based marketing firm with a portfolio of clients in the home industry – 89.5 % of millennials say owning a home is a part of their American dream, and less than one percent said that owning a home was not important to them.

The number-one reason to own a home was emotional rather than rational. Sixty-three percent said they want to own a home because they like the idea of living in a home. Forty-four percent want to build wealth through home ownership. Surprisingly, major life events were not big drivers of a desire to buy a home. Only 23 % said getting married was a reason for buying a home, and just 20 % cited having children as a reason.

When asked to rank the most important features of a home, respondents cited location as their number one criteria, followed by number of bedrooms and the home’s size. “Energy efficiency and having smart-home devices surprisingly ranked low among a group that has grown up with technology and against a backdrop of energy related issues,” researchers said.

Even with more people working from home due to COVID, modifying a home office ranked last in terms of where millennials would spend money to make their home just right (2.7%). Topping the list were the living room/great room (52.5%), the kitchen (48.4 %) and main bedroom (40.3%). Men were 10% more likely to spend money in the bedroom, whereas women were 10% more likely to spend money in the kitchen, researchers noted.

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Zillow recently unveiled a series of data-driven predictions for the features and design elements “poised to transform homes and dominate social media feeds in 2024,” based on keywords showing up more frequently in for-sale listing descriptions. In contrast, other design trends popular in recent years are being seen less favorably by home buyers.

Among the home trends waning in popularity, according to Zillow, are:

• Tuscan Kitchens: “Wanderlust and pop culture sensations sparked a wave of destination design during the pandemic” said Zillow, noting that spaces inspired by past or aspirational travels began trending as homeowners were hunkered down at home.
  “Now that homeowners can set off on global adventures again, they may no longer be seeking Mediterranean villa vibes at home,” said Zillow, noting that mentions of Tuscan kitchens are down 45% from a year ago, “while all things Parisian” are down 26%.
• The “Cloffice”: “The pandemic sparked many trends, some lasting and others short-lived (and) the ‘cloffice’ appears to be among the latter,” Zillow said. “This office space, created out of a closet, was a trend that grew out of necessity as remote workers living in tight quarters became desperate for a quiet place to take Zoom meetings,” the company noted.
  Combined with the return-to-the-office movement, the “cloffice” is now appearing in 54% fewer Zillow listings. Zoom rooms are also down, by 41%, and office sheds are highlighted 31% less frequently in listing descriptions, the company reported.
• Shou Sugi Ban: Shou Sugi Ban is a traditional Japanese wood-preservation technique that involves charring the wood’s surface to create a blackened, weathered finish. “This type of burnt-wood cladding became a mainstay of modern farmhouse design, creating a visually striking contrast against white shiplap siding,” Zillow said. “But like shiplap, barn doors and other farmhouse fads, shou sugi ban planks may be heading out to pasture, too.”

According to Zillow, among the key interior trends to watch in 2024 are:

• Brutalism: Characterized by raw, exposed materials, this mid-20th-century design style “is primed to continue its controversial comeback in 2024,” said Zillow. Brutalist-inspired features include blackened steel casement windows, raw concrete floors and jagged patinated bronze light fixtures, Zillow said.
• Sensory gardens or pathways: Sensory gardens have been surging in popularity, with homeowners and home buyers prioritizing functional and beautiful outdoor space “as a way to reconnect with nature,” Zillow said, noting that listings mentioning sensory gardens or pathways are up 314% compared to last year.
• Murano glass chandeliers: Classic Murano glass chandeliers “are the ultimate bespoke light fixture,” said Zillow, adding that these intricate and often colorful handcrafted pieces of art from the island of Murano in Italy “are reemerging as a designer favorite, channeling the glamor of decades past.”
• Murals: Homeowners and home buyers “are saying goodbye to bland” in favor of personality-packed homes, Zillow said. “Eclectic, maximalist interiors are increasingly featuring statement-making murals that dial up the drama, the company noted, adding that “wallpaper murals are now readily available and depict all types of scenes, from large-scale landscapes to modern botanicals.”

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The Bethlehem, PA-based NKBA reported, for example, that surveyed kitchen and bath design firms are increasingly focusing their sales message to maximize leads in the luxury segment, “given that wealthier customers are often unfazed by higher pricing, (and) many firms believe this will help them sustain or even increase their business.”

Other business strategies detailed in the NKBA’s recent Q3 2023 Kitchen & Bath Market Index (KBMI) report were the following:

• Looking to technology to boost productivity. By adding new business technology kitchen and bath design firms “believe they will be less dependent on labor, which is becoming harder to source and more costly,” NKBA said, noting that labor costs are outpacing inflation, while one in three design firms expect their hourly wages to rise by 6% or more in 2024.
• Taking action to offset declining profit margins. Potential actions to boost margins include obtaining supplier discounts, taking on larger projects, and charging higher design fees and markups. “Many designers are also readjusting by focusing on design and consultation only, eliminating the need to deal directly with material and labor costs,” the NKBA said.
• Outsourcing purchasing to clients. The “stress of inflation” has changed the outlook among many customers, “influencing how much they budget for their kitchen or bathroom remodel,” according to the NKBA. Outsourcing purchasing functions – such as preliminary searching for materials, ordering and checking in on materials, and communicating with vendors – makes it easier for clients to reduce costs.
• Utilizing subcontractors in lieu of in-house employees. Strategies include marketing directly to skilled trades, attending trade events to recruit trades and contractors, and creating relationships in which trades refer clients to one another. Designers also reported actively recruiting the younger generation to incentivize them to learn a trade, with a long-term commitment to their company, the NKBA said.

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According to a nationwide survey conducted by Kitchen & Bath Design News, dealers and designers, although forecasting modest revenue gains in 2024, say that they harbor nagging concerns about economic conditions impacting sales revenue, business operations, and profit margins in the coming year.

KBDN’s online survey, which garnered 600+ responses, was conducted in November of 2023, amidst a third quarter marked by persistent inflation, 20+-year-high interest rates, a sluggish housing market, skilled-labor shortages, a decline in sales leads, and an increase in project postponements and cancellations.

When asked about current economic conditions impacting their business in 2024, a whopping 93% of those surveyed told KBDN that they are either “somewhat concerned,” “very concerned,” or “extremely concerned.” In contrast, only a scant 7% reported that they are either “not very concerned” or “not at all concerned.”

Those concerns are mirrored in 2024 revenue projections, which are decidedly less bullish than in previous annual forecasts. Indeed, some 69% of KBDN survey respondents reported that they expect 2024 annual revenue to either remain flat or decline compared to 2023. In contrast, less than half that number (31%) said they foresee a revenue increase this year.

Moreover, when asked if anticipated revenue increases in 2024 would be at the same rate as in 2023, only about 35% of those surveyed answered affirmatively. By comparison, 65% of the survey respondents told KBDN that any revenue increase they might experience in 2024 would likely be at a slower pace than in 2023.

Equally sobering are forecasts about 2024 profit margins, which are clearly being impacted by rising product and raw material costs, competitive pressures, and labor costs that have consistently been outpacing inflation.

Specifically, among the kitchen and bath design professionals surveyed by KBDN, only about a quarter (25.7%) said they foresee their company’s profit margins rising in 2024, while roughly three quarters believe their margins will either remain the same (51%) or decline (23.3%) compared to 2023.

When it comes to kitchen and bath remodeling projects, roughly 58% of those surveyed also reported that pricing is generally more critical to clients than it was at the same time a year ago. By comparison, only about 4% said that pricing is less important than it was a year ago, while 38% said pricing is equally important than it was a year earlier.

Also being impacted by lingering economic uncertainties are sales leads. Specifically, more than 42% of those surveyed report that their sales leads and project requests are either “somewhat lower” (28.6%) or “much lower” (13.8%) than at the same time a year ago. By comparison, about 26% say their sales leads are “somewhat higher” than a year ago, while about 25% say they are about the same. Less than 7% report their current number of sales leads are “much higher” than they were a year earlier.

Price increases for products and raw materials, followed by a shortage of labor, head a list of challenges facing kitchen and bath design firms, survey respondents told KBDN. Other top challenges include long lead times for products, persistent production and shipping delays, and customers postponing or canceling projects due to increased costs.

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“Whatever rumors were spread are false,” said Bill French, owner of both Rutt and Wood-Mode. “Wood-Mode and Rutt are separate companies and will continue to have separate management, sales, and marketing. The (Rutt) factory did not miss a day of production, (and) our artisans are more committed than ever to providing the highest quality, custom crafted cabinetry for our discerning customers.”

French’s comments were prompted in part by recent uncertainty in the face of Rutt’s internal restructuring, particularly among the company’s network of kitchen and bath dealers, factory employees, and sales reps, many of whom have been associated with the 70+-year-old custom cabinet manufacturer for decades.

According to French, who spoke exclusively to Kitchen & Bath Design News, management, upon considering various options, has decided to discontinue producing Rutt’s “Regency” line of cabinetry, which French said was unprofitable, and will concentrate exclusively on its high-end “Classic” line. Rutt, said French, will retain about 30 of the company’s “most skilled and experienced” employees at its New Holland, PA factory. Rutt had 80+ employees prior to the company’s reorganization.

“Rutt will engineer, produce, and finish its cabinets in-house,” said French. “Customers will continue to receive the artistic doors, drawers, and custom finishes we’re known for, and anything that’s core to the Rutt brand and quality will continue to be made in our factory in New Holland.”

Rutt, he said, has “encouraged” dealers of Regency cabinets to purchase Wood-Mode Brookhaven cabinets instead, “since Wood-Mode is very efficient in producing high-quality cabinets that are sold at roughly the same price point as Rutt Regency. Similar or identical doors and finishes that Rutt produced in Regency will be available from Wood-Mode to satisfy Regency clients,” French noted.

In certain territories, sales previously handled by Rutt reps will be handled by the company’s customer service and engineering department, according to French. When sales require, Rutt will add production capacity, he added.

Founded in 1951 as Rutt Handcrafted Cabinetry, Rutt was previously owned by Wellborn Cabinet, Inc., which sold the company in 2018 to private-equity firm Birch Holdings of PA. French, a Pennsylvania businessman with diverse holdings, purchased the company in 2022, some three years after acquiring the assets of the former Wood-Mode Inc.

“We are honored to continue the tradition of quality started by Phares Rutt,” French said. “Rutt Quality Cabinetry’s dedication to its team, business partners, and customers is stronger than ever.

“Rutt,” he added, “is excited to provide beautiful, handcrafted cabinetry now and into the future.”

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The doors to Portobello America’s new 986,000-sq.-ft. facility were opened at October 2023 ceremonies that included about 500 guests from around the globe, the company said.

“This facility was developed to meet the needs of American distributors,” said Cesar Gomes, Jr., chairman of the board of Brazil-based parent company Portobello Grupo. “We have built a factory here not for mass production, but for flexibility … to attain the market with the right service. Service is the key to everyone’s success.”

Guests at the ceremonial factory opening received an exclusive preview of Portobello America’s new 2023 Fall Collection, and also of its new floor and wall tile portfolio, designed exclusively for the American Market.

“Our organization was proud to present Portobello America to our guests after years of planning,” said Portobello America’s CEO Luiz Felipe Brito. “We were overjoyed with the support of government officials, the Brazilian teams, our clients, friends and family – but most of all, our team here in the U.S.”

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Tile, stone, and design professionals can now register at no cost to attend Coverings 2024, show sponsors said. Early online registration offers several benefits, including advanced access to event updates, special program notifications, exclusive promotions, introduction to new product trends and innovations, and the opportunity to contribute to one of several philanthropic causes through the inaugural Coverings Cares program, a new initiative that serves the tile and stone industry and the Atlanta local community through a donation pool of up to $50,000, show organizers added.

Coverings 2024 registrants will have the chance to select and support one of six vetted and deserving charitable organizations when they register for the event, including Atlanta Community Food Bank, Atlanta Habitat for Humanity, Ceramic Tile Education Foundation (CTEF), EARTHDAY.ORG, Gary Sinise Foundation and Tile Heritage Foundation, event sponsors said.

“Coverings is honored to give back to Atlanta and excited to return to the city’s rich culture in April, while offering an amazing event experience to support, unite and engage with the global tile and stone community,” said Jenn Heinold, president of Taffy Event Strategies, the event management company for Coverings. “The 2024 event will be a game-changer for attendees and exhibitors alike, bringing together the most innovative minds through a new slate of meaningful learning opportunities; fostering invaluable networking with industry peers; and showcasing the newest tile and stone products, tools, equipment and technologies from around the world.”

Information can be obtained by visiting www.coverings.com.

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